Supply Chain Management (SCM) involves a series of key activities and processes that must be completed in an efficient and timely manner. Otherwise, the product will not be available when needed by consumers. It is the strategies that optimize the flow of products and services from their source to the customer.
The ability to meet customer requirements is built upon the expectation that everything is done correctly in the supply chain. The goal of SCM is to provide high product availability through an efficient and timely fulfillment of customer demand. It requires an effective flow of products from the source to the endpoint of consumption.
• Planning– the planning process seeks to create effective long- and short-range supply chain strategies. From the design of the supply chain network to the prediction of customer demand, supply chain leaders need to develop integrated supply chain strategies.
• Procurement– the buying process focuses on the purchase of required raw materials, components, and goods. As a consumer, you’re pretty familiar with buying stuff!
• Production– the making process involves the manufacture, conversion, or assembly of materials into finished goods or parts for other products. SC managers handle support for the production and make sure that crucial materials are available when required.
• Distribution– the moving process manages the logistical flow of goods across the supply chain. Logistics companies, transport firms, and others assure that cargoes are moving promptly and securely toward the point of demand.
• Customer Interface– the demand process covering all the problems that are related to planning customer interactions, fulfilling their needs, and completing the orders perfectly.